1. ABC Company is evaluating its inventory costing methods. For the year ended December 31, 2023, it reports the following:
   • Beginning Inventory: 1,000 units at $10 per unit
   • Purchases:
     • January 1: 2,000 units at $12 per unit
     • April 1: 3,000 units at $14 per unit
2. Sales:
   • 4,000 units sold during the year

• Ending Inventory: 2,000 units

a. Calculate the cost of goods sold (COGS) using the LIFO method. b. Determine the cost of goods sold (COGS) using the FIFO method. c. Compare the gross profit under LIFO and FIFO. d. Discuss which method (LIFO or FIFO) would result in higher taxable income for the year.